Tax in Kenya: VAT, income tax, company tax, capital gains
16%
Kenya charges 16% VAT on most goods and services. The rate is verified against Kenya Revenue Authority (KRA) on 19 August 2026; the top personal income-tax rate is 35% (2026 tax year, Kenya Law — Income Tax Act (Cap. 470); Kenya Revenue Authority), and the headline company tax rate is 30% (Kenya Law (National Council for Law Reporting) - Income Tax Act Cap. 470, consolidated to 2026-07-01).
VAT in Kenya
Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 16%
- Local name
- VAT — Value Added Tax
- Type
- VAT
- Reduced rates
- None on record
- Filing
- Quarterly / Monthly / Annual
- Authority
- Kenya Revenue Authority (KRA)
- Current rate since
- 1 January 2000
Income tax in Kenya
The top personal income-tax band is 35% for the 2026 tax year.
Company tax in Kenya
The headline corporate income tax rate is 30%. In effect since 1 January 2021.
Resident companies 30% (6.00 shillings in each 20 shillings for 2021 and later years); non-resident companies with a PE 30% from 2024 (previously 37.5%). Reduced rates for EPZ/SEZ enterprises, local vehicle assemblers, affordable housing developers etc. Turnover Tax (s.12C) applies to resident persons with gross turnover above KES 1m and not above KES 25m (rate not read this session). Section 12G minimum top-up tax: covered persons pay top-up to a 15% combined effective tax rate (Pillar Two-style QDMTT). | Cross-check: OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
Capital gains tax in Kenya
- Shares
- Listed: gains on transfer of securities traded on any securities exchange licensed by the Capital Markets Authority are not chargeable (exempt). Unlisted shares of Kenyan companies: CGT 15% of the net gain, final tax
- Property
- Capital Gains Tax 15% of the net gain (transfer value less incidental costs, less adjusted cost incl. acquisition and enhancement costs), final tax
- Holding period
- none
Ask your AI assistant about tax in Kenya
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT rate in Kenya, and what is the source?”
- “Estimate income tax in Kenya on KES 60,000 for 2026.”
- “What is the company tax rate in Kenya and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Kenya, answered
Questions about tax in Kenya
- What is the VAT rate in Kenya?
- The standard VAT (Value Added Tax) rate in Kenya is 16%, verified against Kenya Revenue Authority (KRA) on 19 August 2026. Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Kenya?
- The top personal income-tax band in Kenya is 35% for the 2026 tax year, verified against Kenya Law — Income Tax Act (Cap. 470); Kenya Revenue Authority on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Kenya?
- The headline corporate income tax rate in Kenya is 30%, verified against Kenya Law (National Council for Law Reporting) - Income Tax Act Cap. 470, consolidated to 2026-07-01 on 6 October 2026. Resident companies 30% (6.00 shillings in each 20 shillings for 2021 and later years); non-resident companies with a PE 30% from 2024 (previously 37.5%). Reduced rates for EPZ/SEZ enterprises, local vehicle assemblers, affordable housing developers etc. Turnover Tax (s.12C) applies to resident persons with gross turnover above KES 1m and not above KES 25m (rate not read this session). Section 12G minimum top-up tax: covered persons pay top-up to a 15% combined effective tax rate (Pillar Two-style QDMTT). | Cross-check: OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
- How is capital gains tax charged in Kenya?
- In Kenya, the regime is mixed, verified against Kenya Revenue Authority - Capital Gains Tax on 6 October 2026. On shares: Listed: gains on transfer of securities traded on any securities exchange licensed by the Capital Markets Authority are not chargeable (exempt). Unlisted shares of Kenyan companies: CGT 15% of the net gain, final tax Holding period: none
- Can an AI assistant look up tax rates for Kenya?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Kenya Revenue Authority (KRA)
- Kenya Law — Income Tax Act (Cap. 470); Kenya Revenue Authority
- Kenya Law (National Council for Law Reporting) - Income Tax Act Cap. 470, consolidated to 2026-07-01
- Kenya Revenue Authority - Capital Gains Tax
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Kenya next to another country in the comparison tool, or read the tax facts.
Explore the tax tools
All tools →Compare tax by country
Put countries side by side — rates, local names, structure and filing.
GST Calculator
Add or remove GST/VAT on any amount, with the formula shown every time.
Tax facts
The weird, wonderful and true history of GST and VAT — every fact sourced.
BAS Calculator (AU)
Your quarterly GST position — 1A, 1B and the net amount payable, worked out for you.
Income Tax & Take-Home
Your income tax, Medicare levy and take-home pay on any salary.
UK Income Tax & Take-Home
Your UK income tax, National Insurance and take-home pay — England, Wales & NI rates.
India Income Tax & Take-Home
Your India income tax on the new regime — the ₹75k standard deduction, the ₹12L rebate and 4% cess, with take-home.
US Income Tax & Take-Home
Your US federal income tax, Social Security and Medicare — single filer, with take-home pay.
Finland Income Tax & Tax Card
Your Finnish take-home pay and tax-card percentage (veroprosentti) — any municipality, church tax, YLE tax and contributions.
HECS/HELP Repayment
Your compulsory study-loan repayment on the marginal system, and what a pay rise really adds.
Superannuation (AU)
Your Super Guarantee, how much concessional cap is left, and whether Division 293 catches you.
Capital Gains Tax
Sold an asset? Fin covers CGT in 71 countries — a figure where the rules are verified, the rule itself otherwise.
Crypto Tax (AU)
Sold or swapped crypto? Fin works out the CGT — same 50% discount, at your marginal rate.
Business Space at Home (AU)
A desk or a place of business? The deductions each year against the CGT on that share when you sell.
Tax Deduction Finder (AU)
Pick your work and how you earn, and get a checklist of what to claim and where each claim goes.
Company Tax Calculator
See the tax on your company’s profit in 139 countries — every rate sourced.
Tax MCP for agents
Connect Claude, ChatGPT or your own agent to live tax rates.
